Cunard Signs Letter of Intent for Queen Mary 2

Company Press ReleaseSOURCE: Cunard LineCunard Signs Letter of Intent for Queen Mary 2$700 Million Liner Will Be the World's Longest, Largest Ever - and the Fastest Cruise Liner Since QE2

MIAMI, March 9 /PRNewswire/ -- Cunard Line announced today that the company has signed a letter of intent to build its super-liner Queen Mary 2 at the Alstom Chantiers de L'Atlantique shipyard in Saint-Nazaire, France. The liner is expected to be launched in the last quarter of 2003. Once launched, Queen Mary 2 is intended to fly the British flag, with her homeport being Southampton, England.

``The signing of this letter of intent is a significant milestone in the birth of this unique vessel,'' said Micky Arison, Chairman and CEO of Carnival Corporation (NYSE: CCL - news), Cunard's parent company. ``Over the last months, our vision of the first true ocean liner to be built in a generation has evolved from a dream to a detailed plan on paper. We are satisfied that the shipyard that created Normandie, France and other legendary liners has the capability to make that dream a reality.''

Alstom Chantiers de L'Atlantique, which employs over 4,000 workers in its facility, has a continuing record of delivering ships of unusual size and style. Recent projects at the yard resulted in large ships for the coastal cruising trade. However, it is entirely another matter to construct a purpose-built transatlantic liner. From the architect's plans to the nature of the steel plating that forms the skin of the hull, a liner differs in most details from the sorts of ships that have been built in the last three decades. Nonetheless, Alstom's officers are confident that their company represents the best choice for Cunard.

``We want to build this magnificent ship because of our history and because of our future,'' said Alstom Chantiers de L'Atlantique Chairman and CEO Patrick Boissier. ``We understand the character of the ship they want to build, and we know how to build that kind of ship.''

``The level of excitement and interest in this project is beyond anything we could have imagined,'' said Cunard Line President and CEO Larry Pimentel. ``Queen Mary 2 seems to embody the public's renewed fascination with the romance of a bygone era of sea travel. Now that excitement and interest is being transformed into a tangible project, with dollars and cents attached to it. From the start, we believed that this project could be realized. Now we have agreed to the fundamentals of how we are going to make Queen Mary 2 not merely a reality, but a sound investment and a resounding success.''

``QM2 will measure over 1,130 feet in length,'' Pimentel continued, ``That's just 117 feet shorter than the Empire State Building is tall. She'll tower nearly 21 stories in height from keel to masthead, with a gross registered tonnage of nearly 150,000 tons.'' Pimentel stated that QM2 is expected to carry just 2,800 guests, which is a very small complement for a ship of this size, and a guest-to-crew ratio of about 2-to-1 will enable a superb service standard.

``But aside from her sheer size,'' said Pimentel, ``She is a marvel of innovative features, specifically designed for her. For instance, she will be propelled by the world's first four-pod ship propulsion system, utilizing two fixed and two rotating propulsion pods that will enable her to cruise at nearly 30 knots. Inside, she'll have all the dramatic features and grand scale that marked the great liners of the past, enhanced by the latest technology for comfort and convenience. The combination of all of these elements will produce the most luxurious ocean liner ever built.''

A recent agreement with the City of Long Beach, California and its affiliates which operate the floating hotel Queen Mary has cleared the way for Cunard Line to use the name Queen Mary 2 for its new liner.

The final building agreement is subject to several conditions including the finalization of definitive contracts and financing.

Cunard Line, one of the world's most recognized brand names with a classic British heritage, is operated by Miami-based Cunard Line Limited, which also operates Seabourn Cruise Line. Cunard Line Limited is a unit of Carnival Corporation (NYSE: CCL - news).

The Cunard fleet includes famed Queen Elizabeth 2 and Caronia. The Seabourn fleet includes Seabourn Sun, Seabourn Pride, Spirit and Legend and Seabourn Goddess I & II. Cunard Line and Seabourn Cruise Line are members of the exclusive World's Leading Cruise Lines alliance, which also includes Carnival Cruise Lines,Holland America Line, Costa Cruises and Windstar Cruises. Together, these member lines share a commitment to quality and value, offering cruise vacations that appeal to the widest range of lifestyles and budgets and sail to some of the world's most exciting destinations. Cunard Line and Seabourn Cruise Line represent nearly 50 percent of the world's luxury cruise market.